Key takeaways:
- Only the owner of a Registered Education Savings Plan (RESP) — usually a parent, grandparent, or guardian — can withdraw money from the account (and withdrawals require the student to be enrolled in an eligible post-secondary program)
- RESP withdrawals are split into Educational Assistance Payments (EAPs) and Post-Secondary Education (PSE) withdrawals, and the account owner chooses which type to take (or a mix) when requesting a withdrawal
- There are tax implications for RESP withdrawals for the student attending post-secondary
When the post-secondary acceptance letters start piling up for kids finishing high school, so do the related expenses.
Tuition, textbooks, meal plans, housing, cell phones, and transportation. Post-secondary expenses add up fast.
If a parent has been contributing to a Registered Education Savings Plan (RESP) — and hopefully been taking advantage of government grants — this is the time to use those funds to help pay for some of their child’s post-secondary education.
What RESP funds can be used for:
- tuition
- textbooks
- rent
- transit
- technology (like laptops)
- other reasonable costs associated with studying and living as a student
But wait, how do parents actually withdraw the funds? Can the student access the funds directly, or does it have to be a parent? How long will it take?
And once the money’s out, what are the tax implications?
Here we’ll dig into some details Canadians might want to know about withdrawing from an RESP and putting the funds toward their child's education. Plus, we’ll explain what happens to the funds if a teenager or young adult decides post-secondary isn’t the path they want to take.
What’s an RESP?
First, a quick refresher: An RESP is a tax-deferred savings account designed to help Canadians save for a child or young adult’s post-secondary education. While it’s common for parents to be the ones to open an RESP, technically any adult, such as a grandparent, can open the account for a child in their life.
The person who opens the RESP can set up either an individual RESP for one child or a family RESP for multiple children.
Fifteen per cent of Canadians have an RESP, according to recent TD survey data. RESPs are most common among Millennials, 25% of whom have an account, followed by Gen Z (17%) and Gen X (15%).
Through the Canada Education Savings Grant (CESG), the government contributes a 20% match on the first $2,500 the account holder puts in the child’s RESP annually, up to $500 per year and $7,200 in total per child.
Parents and other account owners may also qualify for the Canada Learning Bond, a $2,000 incentive for low-income families that the federal government deposits directly into an RESP, or other provincial grants.
Contributions and government matching held in the RESP can be invested and any earnings grow tax free in the account. When the money is taken out, it’s taxed in the student’s name.
What are the RESP withdrawal rules?
Only the account owner can withdraw money from an RESP. There are two types of withdrawals. The first is an Educational Assistance Payment (EAP), which includes government grants and any investment earnings. This money is taxed as income for the student.
But because students usually have little or no income, they often pay little to no tax.
That said, if a student has other sources of income—such as a part-time or summer job—it may be helpful to stagger EAP withdrawals to avoid pushing them into a higher tax bracket.
The second type of withdrawal is called a Post-Secondary Education (PSE) withdrawal, which comes from the parents’ original contributions.
These can be taken out at any time and aren’t taxed – for the account owner or the child – because the money was already taxed before going into the RESP.
How does withdrawing from an RESP work?
To withdraw money from an RESP, your child must be enrolled in an eligible post-secondary program (access the full list of eligible programs on the Government of Canada website).
When submitting a withdrawal form to the bank or financial institution, the account owner will specify the amount and whether the funds should come from EAPs or PSE contributions, or a mix of both.
Most providers also require proof of enrollment from the student, such as a course schedule or confirmation letter.
RESP withdrawals usually take five to 10 business days to process, so it’s a good idea to plan ahead — especially as parents and students take stock of any deposit payments they must make to secure housing or program spots.
What if my child doesn’t need or use the RESP?
No problem. Parents can still access RESP funds, but there are some important rules to remember. Before making changes to the account, consider speaking to a TD Personal Banker, who can help parents understand how the funds can be used and how their goals might have changed.
The original contributions can be withdrawn at any time, tax free. That said, any unused government grants must be paid back to the government.
Any investment earnings in the RESP can be withdrawn, but only if certain conditions are met. Some of these conditions include the RESP being at least 10 years old, and the beneficiary being over 21 and not enrolled in a qualifying program. The investment earnings are taxed as regular income, plus a 20% penalty tax.
If the account owner has available contribution room, they may be able to transfer up to $50,000 of those earnings into their Registered Retirement Savings Plan (RRSP) to avoid the penalty.
About the TD Survey
This TD survey, conducted using the Leger Opinion panel, ran from March 26 to March 30, 2026, with a nationally representative sample of 1,521 Canadian adults; results were weighted by age, gender and region to match the population, according to Census data. For comparison purposes, a probability sample of 1,500 has an estimated margin of error of ±2.5%, 19 times out of 20.